In Making a Preliminary Judgments About Materiality, the Auditor Initially

question 20

Multiple Choice

In making a preliminary judgments about materiality, the auditor initially determines the aggregate (overall) level of materiality for each statement. For planning purposes, the auditor should use the:

• A) levels separately.
• B) level he or she judges to be the more reliable.
• C) average of these levels.
• D) largest aggregate level.
• E) smallest aggregate level.

---

Definitions:

Canadian Businesses

Companies or enterprises that operate in Canada or are owned by Canadian individuals or entities.

Leadership

The action of leading a group of people or an organization, or the ability to do this through influence, inspiration, or direct management.

Big Five Dimensions

A model used to describe human personality through five broad traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual, distinguishing one person from another.